China's DCP Capital aims to sell Singapore tech firm MFS for at least $550 mln - sources

By and

HONG KONG, March 17 (Reuters) - Chinese private equity firm DCP Capital aims to sell its Singaporean portfolio firm MFS Technology, which makes flexible printed circuit boards, for at least $550 million, two people with knowledge of the matter told Reuters.

The firm, founded by former KKR & Co dealmakers David Liu and Julian Wolhardt, started marketing the sale on Friday and will send out confidential information memoranda next month, one of the sources said.

The sale is targeting primarily financial sponsors, but also strategic buyers, according to the two sources and a separate person with knowledge of the transaction.

Initial bids are expected by late May, one of the sources said.

BDA Partners and Jefferies are advising DCP on the sale, the sources said. All of the sources declined to be identified as the information was confidential.

DCP Capital and BDA Partners declined to comment. MFS and Jefferies did not immediately respond to a request for comment.

The Chinese firm bought a controlling stake in MFS in 2018 from Navis Capital Partners and Novo Tellus Capital Partners for an undisclosed amount.

Founded in 1989, Singapore-headquartered MFS manufactures circuit boards with applications focused on automotive, industrial, medical and data storage end-markets.

It manufactures in China and Malaysia, and has sales teams in Germany and Canada, its website shows.

In 2022, the company's earnings before interest, taxes, depreciation, and amortisation totalled $46 million, said one of the sources.

DCP was set up in 2017 by Liu, who was KKR's head of Greater China and a co-head of its Asia private equity business, and Wolhardt, a senior KKR executive in the region, after both worked with the U.S. buyout firm for 11 years.

DCP raised $2.5 billion in its maiden fund in 2019, focusing on China investments.

Reporting by Kane Wu in Hong Kong and Yantoultra Ngui in Singapore; Additional reporting by Julie Zhu in Hong Kong; Editing by Kenneth Maxwell

Our Standards: The Thomson Reuters Trust Principles.

Thomson Reuters

Yantoultra Ngui is a Southeast Asia Deals Correspondent with Reuters in Singapore, covering M&A and capital market deals in a region that is fast emerging as a hot destination for startup investors, unicorns and IPOs. He previously was a reporter at Bloomberg and The Wall Street Journal. Notably, he was part of WSJ's team that covered the financial scandal at Malaysian state fund 1MDB. Yantoultra graduated with an MBA in Finance from Universiti Putra Malaysia in 2010.